Tehran, Iran, Nov. 28
By Dalga Khatinoglu - Trend:
OPEC oil basket price dropped $2.9 to $70.8 per a barrel on Nov.27, with the failing of the Cartel's meeting to cut oil output.
OPEC members held a meeting in ministerial level on Nov.27 to evaluate the global oil market and the falling of the oil price by more that 35 percent since June.
OPEC oil basket price was $107.89 in mid-June, but has been in dramatic decline, especially after October.
OPEC oil basket is currently made up of the Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
Iran and Venezuela wanted to lower the Cartel's oil output and set a new ceiling level below the current 30 million barrels per day (mbpd) level.
Despite the ceiling level of 30 mbpd by OPEC, 12 members of this cartel produced 30.253 mbpd in October, according the OPEC's latest monthly report.
This is while OPEC says that the demand for OPEC crude is estimated at 29.5 mbpd in 2014. In 2015, the figure is estimated to reach 29.2 mbpd.
Saudi Arabia as the biggest OPEC producer isn't keen to keep oil production low to protect their share in international markets.
A falling OPEC oil price to the verge of $70 has occurred while some members suffer from budget deficit. Iran's yearly budget was set based on $100/barrel.